(1) Subject to rules, if any, that may be made under this Act, and regard being had to the fact that the Authority itself provides in the area within the jurisdiction of any local authority any of the infrastructure which the local authority provides, the Authority shall not be liable to pay the taxes including property taxes, if any, but it shall be lawful for the local authority to arrive at an agreement with the Authority to receive a lump sum contribution in lieu of all or any of the taxes levied or services rendered by the local authority.
(2) Where no such agreement as is referred to in sub-section (1) can be reached, the matter may be referred to the Government, and the Government may, after giving to the local authority or the Authority or both, a reasonable opportunity of being heard, decide the amount of such contribution. The decision of the Government shall be binding on both parties.